13. Earnings Per Share

Net
earnings per share is calculated using the weighted average number of shares of common stock outstanding during the applicable
period. Basic weighted average shares of common stock outstanding do not include shares of restricted stock that have not yet
vested, although such shares are included as outstanding shares in the Company’s Consolidated Balance Sheet. Diluted net
earnings per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common
shares outstanding during the period. Potential shares of common stock consist of the additional shares of common stock issuable
in respect of restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted
from net earnings to determine the amount available to common stockholders.

The
following table presents the computation of basic and diluted net earnings per share:

Three Months Ended
June 30,

Nine Months Ended
June 30,

2018

2017

2018

2017

Basic

Net income

$

2,077,038

$

2,128,043

$

5,877,866

$

5,397,282

Less: preferred stock dividends

(292

)

(479

)

(876

)

(1,438

)

Net income applicable
to common stock

$

2,076,746

$

2,127,564

$

5,876,990

$

5,395,844

Weighted average common
shares outstanding

1,970,136

2,044,767

1,972,758

2,289,646

Basic earnings per share

$

1.05

$

1.04

$

2.98

$

2.36

Diluted

Net income applicable to common stock

$

2,076,746

$

2,127,564

$

5,876,990

$

5,395,844

Add: preferred stock dividends

292

479

876

1,438

Net income applicable for diluted earnings
per share

$

2,077,038

$

2,128,043

$

5,877,866

$

5,397,282

Weighted average common
shares outstanding

1,962,039

2,044,767

1,983,719

2,289,646

Add: Options

38,980

35,296

42,440

53,081

Add: Series B Preferred Stock

1,071,200

1,071,200

1,071,200

1,071,200

Add: Series B Preferred Stock Warrants

590,145

590,145

590,145

590,145

Add: Series E Preferred Stock

77,840

127,840

77,840

127,840

Assumed weighted average
common shares outstanding

3,740,204

3,869,248

3,765,344

4,131,912

Diluted earnings per share

$

0.56

$

0.55

$

1.56

$

1.31

There
are 121,250 and 124,168 common stock options that are anti-dilutive that are not included in the three months ended June 30, 2018
and 2017, diluted earnings per share computations, respectively. There are 121,250 and 111,668 common stock options that are anti-dilutive
that are not included in the nine months ended June 30, 2018 and 2017, diluted earnings per share computations, respectively.